A recent report by payment company Moniepoint reveals that 80% of pharmacies in Nigeria now pay for goods digitally, with 56.8% utilizing point-of-sale systems and bank transfers, while 32.9% rely on direct bank transfers.
This shift comes in response to the 2023 cash crunch that disrupted cash transactions across the country.
The report, titled Inside Nigeria’s Community Pharmacies, highlights how the adoption of digital payments has transformed pharmacy operations, enhancing customer service, strengthening supplier relationships, and improving financial management. Only 5.2% of pharmacies continue to use cash, while 3.2% are exploring alternative payment methods, and 1.9% utilize credit facilities.
Customer preferences also reflect this trend, with 45.39% of pharmacy customers opting for digital payment methods, compared to just 7.69% who pay solely in cash. The remaining 46.92% use a combination of both methods, driven largely by the recent cash shortages that have made cash transactions less reliable.
For community pharmacies, this digital shift presents an opportunity to boost customer satisfaction. Medplus, one of Nigeria’s largest pharmacy chains, serves over 2,000 customers daily, many of whom prefer digital payments. Ife Bakare, Head of Strategy and Innovation at Medplus, noted the noticeable improvements in digital payment services but emphasized the need for further enhancements to strengthen customer relationships.
The report also underscores that digital payments are streamlining supply chains for pharmacies, reducing the risk of transaction failures that can disrupt operations. Chi, founder of Dexta Pharmacy, shared her experience of a near-miss with a cash transaction failure that jeopardized her relationship with a trusted supplier. Since switching to digital payments, she has maintained that trust.
Despite the advantages of digital payments, pharmacies face challenges in securing funding, with only 17.2% having obtained loans from banks or financial institutions. However, those adopting digital payments can build stronger financial records, potentially improving their chances of securing loans in the future.
